Australians Have Lost Faith in Innovation

23 Jul 08

Australians believe when it comes to innovation, the glory days of the Hills Hoist are behind us! So says new research* by The Leading Edge, Australia's foremost insights consultancy. According to The Leading Edge Trends Index survey of 1,234 18-64 year old Australians, 70% of people do not believe Australia is a world leader in inventing new products and services.

The report hypothesised that whilst manufactures are actually launching more new products than ever before, consumers are generally not impressed by products which are simply dressed up as "new".

"A deluge of "new" products hits our shelves daily, but it takes something really different to stand out and these days consumers take new packaging and flavours for granted. These changes aren't innovation; they are simply the continual renovation of the offer needed to keep brands fresh in consumers' minds," said Virginia Proud, Branding and Innovation Consultant, The Leading Edge.

When Australians were asked to name a brand or service they thought was innovative, it was technology, IT and electronics that topped the list. Not surprisingly, all were overseas brands. Apple, Sony, LG, Samsung, Nokia and Panasonic were frequently mentioned, however, only 22% of respondents were able to name a specific brand they considered innovative while 45% were unable to recall anything at all.

The Leading Edge consultants believe this 'recognition mind-blank' does not indicate a lack of demand for innovation; in fact the exact opposite is true. "One of the most interesting insights to come out of the Trends Index showed Australians are more than willing to give new products a go. A massive 71% of respondents claimed they like to try new products and services," continued Virginia Proud.

"This is a huge challenge for Australian businesses. We have nearly three quarters of the population willing to try new products and very few companies delivering anything exciting or memorable.

"Innovation is now a huge buzz word in marketing and there are more "innovation teams" than there have ever been. Unfortunately a lot of companies still believe innovation is a brainstorming session and a room full of flip charts and then wonder where the "big ideas' are, or why their ideas can't be commercialised. They struggle to implement the systems, skills and processes needed to deliver innovation. The challenge for businesses that need breakthrough innovation is building a sustainable program, with a focused strategic agenda in a business and marketplace context," concluded Virginia

The good news for Australian businesses is the knowledge that consumer interest exists. For those willing to give innovation the focus it requires, the rewards are there to be reaped.

Source: The Leading Edge

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